[Author’s Name]
[Institution’s Name]
Essay on FedEx vs. UPS
One company created an industry and saw its name become a verb ("Do you need me to FedEx that?"). The other is a brown, boring behemoth that delivers a ton of money to the bottom line and the balance sheet, but little gain in share price to its stockholders. For two companies that compete in almost every way, FedEx and United Parcel Service are quite different. FedEx is primarily an overnight air delivery company with a nonunion work force; UPS moves packages mostly over the ground using one of the world's largest unionized work forces. While it's easy to tell the difference, it's far tougher to sort out who is winning the battle.
Market Share
FedEx has the greatest share of the overnight delivery market, every day moving about 1.9 million domestic packages and letters overnight, compared to 1.1 million moved on that basis by UPS. But in the age of fax and e-mail, the overnight market is shrinking and it has thin margins, due to its dependence on planes.
UPS handles about 55 percent of the parcels moved in the United States, compared to about 22 percent for FedEx, and 17 percent for the U.S. Postal Service. UPS wins points for operating efficiency by moving both overnight and deferred ground shipments on the same trucks and delivery vans; FedEx relies on separate units.
Growth
FedEx has been making a major push to build its network to deliver non-overnight packages both to businesses and residences. It has bought a nonunion trucking company to compete more effectively for large freight shipments. Analysts forecast earnings per share growth of nearly 60 percent from 2002 to 2005, and revenue gains of 16 percent from 2002 to 2004.
UPS is seeking out new avenues for growth. It recently bought the Mailboxes Etc. chain, and is re-branding them as UPS Stores. It also bought a major customs broker and freight forwarder....
This essay has the followings:
Total words: 1409
Total reference: 0
Total price: £19.95
Click here to Order this essay!
Get Professionally written Essays that are:
• Written According to your Exact Requirements
• 100% Original and Non-Plagiarized
• Written by Expert
UK Writers
• Delivered to you before your deadline
Amazingly Low Prices - £9.95/page
